Investing.com – Staples Inc (NASDAQ:SPLS) closed more than 5% lower on Thursday, after fourth quarter earnings and revenue both missed Wall Street estimates.
Impairment charges of roughly $791 million which included charges related to goodwill impairment, restricting costs and asset write downs weighed on results as the office supplies retailer reported earnings of $0.25 per share against expectations of earnings of $0.26 per share.
Total sales of $4.6 billion missed analysts’ estimates of $5 billion while comparable-store sales at the retail business fell 7%, as the company continued with its plan to close approximately 70 stores in North America during 2017.
“Our fourth quarter results were right in-line with our expectations," Staples chief executive officer Shira Goodman said. "I’m increasingly confident that we have the right plan and the right team to transform Staples and get back to sustainable sales and earnings growth."
Forward guidance for the first quarter of 2017 was in line with analysts’ expectations, as the company expects to earn between 15 cents a share to 18 cents a share against expectations of 17 cents.
At its closing price of $8.49, Staples is down 6.19% year-to-date.